Household appliances stocks Blue Star, Crompton dip up to 6%; here's why

Analysts said Blue Star, Crompton Greaves Q1 earnings were impacted by sharp commodity price inflation, a delayed and shorter summer, elevated RAC inventory and subdued pricing.

Blue Star, Crompton Greaves Consumer Electricals share price movement

 

Shares of household appliances were under pressure with Crompton Greaves Consumer Electricals (Crompton) and Blue Star falling up to 6 per cent on the BSE in Friday’s intra-day trade after these companies reported weak earnings for the quarter ended June 2026 (Q1FY27).

 

Crompton dipped 6 per cent to ₹250 on the back of heavy volume. The stock traded close to its 52-week low of ₹217.50 touched on January 30, 2026.

 

At 11:19 AM, Crompton quoted 5.8 per cent lower at ₹252.50, compared to 0.56 per cent decline in the BSE Sensex. The trading volume at the counter jumped over five-fold versus the two-week average with a combined 15.17 million equity shares changing hands on the NSE and BSE.

 

 

Share price of Blue Star was down 4 per cent at ₹1,516.25 in intra-day deals. In the past two trading days it slipped 8 per cent. The stock quoted lower for the fourth straight day, falling 12 per cent during the period.

 

Why household appliances stocks are under pressure?

 

Blue Star reported weak Q1FY27 results, with revenue rising 13.3 per cent year-on-year (YoY) to ₹3,377.9 crore, lower than expectations. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was down 12.5 per cent YoY at ₹175.0 crore, with EBITDA margin contracting 150 bps YoY and 281 bps sequentially at 5.2 per cent. Profit after tax (PAT) declined 15.2 per cent to ₹102.5 crore as compared to ₹120.82 crore in Q1FY26.

 

The management said Blue Star recorded a robust revenue growth during the quarter despite multiple headwinds, including an unprecedented escalation in commodity prices calling for increase in selling prices, the delayed onset and abrupt end of the summer season, and a significant inventory pile-up of old Room ACs in the trade. 

 

The electro-mechanical project segment was supported by strong Data Centre, while order inflows from other segments remained sluggish as cost escalations arising from the West Asia crisis led to the deferment of order finalisations. 

 

On unitary side, Room Air Conditioner (RAC) was probably decent while demand for deep freezers from ice cream manufacturers remained muted. Profitability was impacted by sharp commodity inflation, inability to fully pass on cost increases, delayed onset and early end of summer, dealer inventory liquidation, subdued Room AC pricing, higher advertising/trade scheme spends and weak commercial refrigeration demand.

 

Motilal Oswal Financial Services (MOFSL) said the quarter was impacted by multiple headwinds, including sharp commodity price inflation, a delayed and shorter summer season, elevated RAC inventory and subdued pricing. However, strong order inflows from data-centre MEP (mechanical, electrical and plumbing) projects, along with healthy demand in CAC (Commercial Air Conditioning), supported Q1 performance and are expected to drive growth in the coming quarters, despite continued volatility in commodity prices and exchange rates, the brokerage firm added.

 

EMPS (Electro-Mechanical Projects and Packaged Air Conditioning Systems) and CAC were supported by strong data centre-led order inflows and healthy CAC demand, while UCP (Unitary Cooling Products) margins were impacted by a delayed summer, inventory liquidation and subdued pricing. PES was weighed down by weakness in MedTech Solutions, partly offset by steady growth in the Industrial Solutions business, MOFSL said in the Q1 result update.

 

For Crompton, overall, revenue growth remained modest during the quarter. However, the management indicated that it lost nearly ₹200 crore of revenue due to supply constraints, primarily in the fans & B2B lighting segment. Excluding this impact, revenue growth would have exceeded 20 per cent, reflecting healthy underlying demand, ICICI Securities said in a note.

 

Other key segments, including BLDC fans, pumps, domestic appliances, kitchen appliances, and the lighting business, delivered steady growth during the quarter. Margins moderated due to elevated input costs, although the company implemented price hikes to partially offset the impact. 

 

Going forward, margins are expected to recover gradually, supported by additional price increases and an easing of geopolitical uncertainties, which should help normalise input costs. On a consolidated basis, the company is now consistently delivering double-digit revenue growth and margin, the brokerage firm said. 

Post Q1FY27, Anand Rathi Research Team trimmed the EBITDA margin estimate of Crompton by 3/2bps for FY27/28e, reflecting an adverse mix, as the relatively margin-dilutive Butterfly business scales faster, partly offset by lower electrical consumer durables (ECD) sales following supply chain-led demand loss. 

 

“We model 10.5/19.4 per cent revenue/earnings compound annual growth rate (CAGR) over FY26-28e, driving 410bps improvement in RoCE to 23.4 per cent. Considering the company’s strong brand equity, category leadership, execution consistency and structurally superior margin profile,” the brokerage firm said while retaining a 'BUY' rating on the stock with a target price of ₹340, based on 30x FY28e EPS. 

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